Hemi Energy Adds Leasehold Acreage in Woodson County, Kansas
Tuesday May 29, 9:45 am ET

FORT WORTH, Texas--(BUSINESS WIRE)--Hemi Energy Group, Inc. (Pink Sheets:HMGP - News) acquires additional leases that will add approximately 1200 acres to our lease holdings. This new lease acreage is part of an ongoing larger lease program Hemi is currently executing in Eastern Woodson County, Kansas. This will give Hemi a total acreage equal to almost 7 square miles which has blanket geological formations in this part of Woodson County. When these mature leases, with proven reserves, were originally drilled there was a gas solution drive in the pay zone that produced oil wells that had production of nearly a hundred barrels or greater per day per well. Based on extensive historical records, i.e. driller's notes, core samples, well logs, etc., of these mature leases which have forty-year-old oil wells that are still producing, management believes the newly acquired virgin leases will produce similar or better production results as when these mature wells were originally drilled. This is an exciting opportunity for drilling new wells that will have much closer to virgin bottom hole formation pressure and BOE reserves in place. Therefore, based on the above, management strongly believes, as the new leases without mature wells are proved-up, the proven and probable reserves will increase several fold compared to the independent reserves report that is based only on the five leases with mature wells in Woodson County, Kansas.

Wilshire Capital Group, Inc. and its affiliate companies are currently pursuing due diligence to enable them to assist Hemi Energy Group, Inc. Wilshire has retained a third party petroleum engineering and consultant(s) firm that is used and well accepted by larger oil companies and Wall Street investment bankers. Hemi and Wilshire will expand its working relationship, when due diligence is completed, to pursue strategic acquisitions of oil and gas producing properties and implement expansion of ongoing developmental drilling programs. Planned funding from Wilshire for future Hemi developments is to be accomplished through a division orders, i.e. contracts to purchase future oil production. There is no intent to use equity dilution in any form for future development of Hemi leases. Stockholder's equity interests will continue to be maintained as it has been in 2007. Management believes that the market cap and the market price are currently artificially low. This belief is based on the total value of the oil and gas reserves on leases in Kansas, lease values in four other states, its extensive research library and management's experience.

Hemi Energy Group is an independent crude oil and natural gas producer employing a unique business model capitalizing on technological advances to exploit mature fields with million of barrels of proven oil remaining in the ground.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.